_________________ is credited for closing the salaries expense for the period.

• A) Accrued Salaries
• B) Salaries income
• C) Salaries expense
• D) Income statement

All of the following are the deprecation methods for tangible fixed assets EXCEPT:

• A) Sum of years digit method
• B) Number of units output method
• C) Fair value method
• D) Number of service hours method

__________________ is posted in the debit side of debtors account.

• A) Cash sales
• B) Balance c/f of debtors
• C) Cash purchase
• D) Balance b/f of debtors

ABC Corporation has recently purchased a new production plant. Its purchase price is Rs. 100,000, import duty Rs. 8,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 105,000
• B) Rs. 100,000
• C) Rs. 113,000
• D) Rs. 108,000

All of the following items appear on debit side of Trade receivable control account EXCEPT:

• A) Discount allowed
• B) Credit sales
• C) Interest charged to debtors
• D) Cheques dishonored

In case of creating the provision for discount on debts, __________________ is credited.

• A) Receivable account
• B) Discount on debts account
• C) Provision for discount account
• D) Trade discount account

________________ is posted in debit side of receivable account.

• A) Balance c/f of receivable
• B) Cash sales
• C) Cash purchase
• D) Balance b/f of receivable

Expense due at the end of the period is treated as:

• A) Liability
• B) Drawings
• C) Income
• D) Assets

Income account is closed at the end of the accounting period in:

• A) Expense account
• B) Income statement
• C) General Journal
• D) Balance sheet

ABC Corporation has recently purchased a used production plant. Its purchase price is Rs. 100,000; cost incurred to remove plant from site Rs. 4,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 100,000
• B) Rs. 105,000
• C) Rs. 109,000
• D) Rs. 104,000

Expenses paid but the benefit is not received till the end of the accounting period is treated in balance sheet as:

• A) Asset
• B) Liability
• C) Capital
• D) Drawing

While preparing a Debtors Control Account, Debit side posted items cause:

• A) Increase in creditors’ balance
• B) Both increase and decrease in debtors’ balance
• C) Decrease in debtors’ balance
• D) Increase in debtors’ balance

If cost of a plant is Rs. 90,000, total estimated hours are 11,000 and number of hours worked during year 2019 are 8,000. Then calculate depreciation for year 2019 if deprecation rate per hour is Rs. 6.

• A) Rs. 48,000
• B) Rs. 30,000
• C) Rs. 540,000
• D) Rs. 66,000

Which of the following can be attributed as ‘Useful life’ a tangible fixed asset?

• A) Period over which the asset is expected to be used
• B) Number of hours expected to put the asset in production
• C) All of the given options
• D) Number of production units expected to be obtained from the asset

A debtors’ control account is used to record all the transactions related to:

• A) Cash sales
• B) Credit purchases
• C) Cash purchases
• D) Credit sales

Expenses incurred but not yet paid till the end of the accounting period is treated in balance sheet as:

• A) Asset
• B) Drawing
• C) Liability
• D) Capital

Expenses paid in advance at the end of the period is treated as:

• A) Drawings
• B) Assets
• C) Income
• D) Liability

A receivables ledger control account had a closing balance of Rs.9,000. Credit purchases of Rs. 500 had been omitted to record in this control account. What should be the correct balance of receivables control account?

• A) Rs. 9,500 debit
• B) Rs. 8,500 debit
• C) Rs. 9,000 debit
• D) Rs. 8,000 debit

A payables ledger control account had a closing balance of Rs.9,000. A discount received of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 8,000 credit
• B) Rs. 9,500 credit
• C) Rs. 10,000 credit
• D) Rs. 8,500 credit

If cost of a plant is Rs. 90,000, total estimated output is 30,000 units and units produced during year 2019 are 7,000. Then calculate deprecation for year 2019 if deprecation rate per unit is Rs. 3.

• A) Rs. 270,000
• B) Rs. 90,000
• C) Rs. 180,000
• D) Rs. 21,000